134 U.S. Bank Executives Urge Senate to Tighten Stablecoin Reward Provisions in Clarity Act on July 29

According to Bitcoin.com News, on July 29, 134 U.S. bank executives and industry leaders jointly urged the Senate to modify Section 10404 of the Clarity Act, which restricts interest or yield payments on stablecoins. The letter calls for stricter language to prevent companies from circumventing the ban through rewards, incentives, or other arrangements that effectively replicate stablecoin yield benefits. Bank leaders warned that if stablecoin products attract deposits through interest-like rewards, it could erode hundreds of billions of dollars in local credit funding, jeopardizing loans to households, small businesses, farmers, and local employers. The banks advocate that stablecoin payments should prioritize transaction functionality rather than being designed as long-term holding incentives.
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